Time Warner Cable is continuing its transition to all-digital video with a rollout of "TWC Maxx" in Kansas City, beginning next week.
The TWC Maxx program allows Time Warner Cable Inc. (NYSE: TWC) to reclaim bandwidth from analog video channels and use that capacity to offer faster Internet speeds and new advanced TV services. As the transition progresses, subscribers in Kansas City will see speed tiers increase from 15 Mbit/s to 50 Mbit/s; from 50 Mbit/s to 200 Mbit/s; and from 100 Mbit/s to 300 Mbit/s downstream. Customers will also gain access to an Enhanced DVR product that includes 1 terabyte of on-board storage, the ability to record up to six programs at once and an expanded library of on-demand video.
Initial deployments of TWC Maxx wrapped up in New York and Los Angeles last year, with the result that Time Warner saw higher broadband subscriber gains in the third quarter. However, TWC continued to lose video subscribers, and residential video revenues slipped overall. (See TWC Broadband Subs Soar, Video Slumps.)
Time Warner Cable moved on to Austin, Texas with TWC Maxx late in 2014, and expects to complete the transition there early this year. Dallas and San Antonio are next on the cable company's target list, with Charlotte, Hawaii, Raleigh and San Diego on the docket for later in 2015.
The markets benefiting from the TWC Maxx initiative tend to be highly populated and/or highly competitive regions. However, there's another common characteristic among the cities as well. None of them are part of the group that Time Warner Cable expects to send off to Charter Communications Inc. if the multi-transaction merger deal between Comcast Corp. (Nasdaq: CMCSA, CMCSK), TWC and Charter goes through later this year.
Charter, which completed its own all-digital transition last year, will have to start over with any subscribers that it acquires from Time Warner. (See Charter Completes Digital Transition.)
— Mari Silbey, special to Light Reading